Posted on 04/06/2018 6:52:29 AM PDT by SeekAndFind
Recent national economic reports point to a robust economic recovery. Employment is steadily increasing, and unemployment has fallen to a 17 year low. But obscured by the national averages are 52 million Americans still living in distressed communities, areas where poverty rates, unemployment, income, and business growth are far below the national averages.
This economic recovery has been unusual with its geographic concentration. Research by the Economic Innovation Group shows that just 73 out of 3,000 counties produced more than half the job growth in the first five years after the recession. A mere five metro areas were responsible for half the nation’s increase in new firms.
Outside of these prosperous metropolitan areas, the picture is grim. Two-thirds of distressed areas saw a decrease in jobs from 2000 to 2015, and 72 percent saw more businesses close than open. Labor force participation is lower and poverty is higher. There are more deaths due to alcohol, drugs, and suicide—characterized as "deaths of despair.” These Americans feel betrayed by trade agreements, vulnerable to globalization, and ignored by Washington, Wall Street, and Silicon Valley elites.
One reason for the slower recovery in these regions is that they lack the capital needed to start or expand businesses and revitalize their community. Data shows that 75 percent of venture capital goes to just three states, California, New York, and Massachusetts. Federal Reserve researchers found that in rural areas, bank loans of less than $1 million (after adjusting for inflation) are way below what they used to be before the recession.
That could change with the introduction of “Opportunity Zones,” a provision of the Tax Cuts and Jobs Act that gives investors the chance to reduce their capital gains tax when they invest in these distressed parts of the country.
(Excerpt) Read more at realclearmarkets.com ...
This is cr@p.
Demonrats drove these communities into the ground, and now want to be rewarded with government grants and tax breaks.
It’s the Peter Principle on steroids.
This has been tried for decades under many different names and it has never worked. This is just “social engineering” applied to business. It’s “industrial policy lite” — instead of picking which industries to subsidize, government picks which areas to subsidize.
There’s a reason companies expand in already successful areas — nicer places with more amenities where people want to live, better housing, a workforce that is educated and dependable, more universities and colleges for continuing education, better transportation, etc.
A much cheaper, faster and more effective way to get people working is to reduce government welfare by 50%. Works every time it’s tried.
MORE ‘social\economic’ engineering (usually involves trampling/suppression of Rights) by govt. What could go wrong?
Saw the labor force participation rate was posted this am falling .1% back to where it was when Trump assumed office.
We have a park in the center of our city that was infested with homeless. A beautiful park with a canal running through it that normal people were afraid to use. The city decided to ‘upgrade’ the area by helping develop living areas around the park instead of just industrial. Was touted for years as the way to live and rebuild areas. They finished it and now all the housing is crap too. Because they filled it with crap people. The area is no better after all that money spent.
Jack Kemp is unavailable for comment
In high property tax states like Pennsylvania; Opportunity Zone = land a democrat contributor owns.
Just take all those living in Silicon Valley move them to the slums of LA without any nice cars, guns or locks on their doors and all this lunacy would end in a single generation of socialism. In China entire villages do no lock their doors....
Reagan did opportunity zones.
The first community to apply for one was
Palm Springs, California.
When there’s money on the table they’re ALL disadvantaged.
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